AGRITEC ID – EMRC AGRITEC ID – EMRC INTERNATIONAL BUSINESS FORUM INTERNATIONAL BUSINESS FORUM Mark Terken Lisbon, 20 Mark Terken Lisbon, 20 – 21 Jan 2011 – 21 Jan 2011 PRIVATE EQUITY in PRIVATE EQUITY in AFRICAN AGRICULTURE AFRICAN AGRICULTURE Zambia is reeling it Zambia is reeling it in… in…
22
Embed
Private equity and commercial agriculture in Africa
In recent years Zambia has become very successful in attracting FDI in the form of Private Equity for commercial agriculture. What are the motives for PE Funds to invest in African farm land and large scale agriculture.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
AGRITEC ID – EMRCAGRITEC ID – EMRCINTERNATIONAL BUSINESS FORUMINTERNATIONAL BUSINESS FORUM
Mark Terken Lisbon, 20 – 21 Jan 2011Mark Terken Lisbon, 20 – 21 Jan 2011
PRIVATE EQUITY in PRIVATE EQUITY in AFRICAN AGRICULTURE AFRICAN AGRICULTURE
Zambia is reeling it in…Zambia is reeling it in…
LIBERALIZE, FACILITATE.. LIBERALIZE, FACILITATE..
... INVEST & HARVEST... INVEST & HARVEST
22
PRESENTATION OUTLINE PRESENTATION OUTLINE 7 x7 x
1. Mark Terken Project Development
2. Farming is a business & the value chain is complex
3. Different actors, different objectives in Agriculture
4. Farm classifications, what is commercial agriculture
5. Targeting commodity and country
6. Finance in Large scale agriculture
7. Zambia, a success story, and what else ‘To Do’
33
1.1. WHAT WE DOWHAT WE DO• Mark Terken Project Development • Results in Southern and West Africa• Clients are actors in developing sustainable
commercial Agriculture in Africa;– Corporate Agri Investors– SSA Governments– Development Finance Institutes (DFI’s) – Banks– Funds– UN & Donor organizations, Projects
44
IT IS A LONG ROAD..IT IS A LONG ROAD..
55
But some 20 private equity funds are now specializing in investments in African farm land and Large scale Agriculture
2. 2. FARMING IS A BUSINESS !FARMING IS A BUSINESS !
1. Markets & Competiveness FIRST !!
2. Only grow crops that YOU, your country, the soil & climate and that your farm grow well
3. Management, management, management
4. Good seed, follow required timing and husbandry, apply fertilizers and agro chemicals as advised, optimize your systems
5. Be competitive; buy inputs at low prices, achieve yield targets & sell at the right time
6. Determination, prepare to ride the waves 66
77
RIDE THE WAVES, HIGH & LOW
A COMPLEX VALUE CHAINA COMPLEX VALUE CHAIN
88
3. 3. DIFFERENT ACTORS;DIFFERENT ACTORS;
1. National food security & import substitution (political, trade balance, pricing & inflation control objectives)
2. Subsistence support to the hungry & poor(Humanitarian & Piece)